| dc.description.abstract | Over the past five years, there has been an upsurge of hotels around Nairobi County. They
have, however, had difficulties with internal controls. The rising fraud in Nairobi's well-known
hotels is evidence of this. The goal of this study was to evaluate how internal control systems
affect the financial success of hotels in Nairobi County. The study specifically aims to appraise
the impact of detective controls, preventive controls, and corrective controls on the financial
performance of hotels in Kenya. It also aims to assess the impact of preventative controls and
detective controls on the financial performance of hotels. The study utilized a descriptive
research design. The study focused on 45 hotels in the county of Nairobi (five-star, four star
and three star). Employees in the hotels' internal audit and accounting and finance departments
formed the target population of this study. All 45 hotels were included in the study because
they are convenient for access. A sample of 90 respondents was drawn from each hotel's
finance and internal audit managers for the study. The personnel who took part in the study
were chosen via purposeful sampling. Questionnaires was used by the researcher to gather data.
Pilot study was conducted in Kiambu County from the five hotels. The supervisors assessed
the instruments to determine their validity and recommend any necessary adjustments. STATA
generated the Cronbach alpha value based on the results of the pilot research to determine the
reliability of the surveys. The information found in the gathered surveys was analyzed using
descriptive and inferential statistics using STATA software. Tables and graphs was used to
present the data. The study concludes that hotels in the Nairobi County use a variety of
corrective, detective, and preventative controls based on the descriptive data. The study comes
to the further conclusion that asset value and profitability are the major metrics used by Nairobi
County hotels to gauge financial performance. The study deduces from the model summary
that there is a significant correlation between corrective, detective, and preventative controls
and the financial performance of categorized hotels in Nairobi County. The study also comes
to the conclusion that the main elements affecting the financial performance of hotels in
Nairobi County are corrective, detective, and preventative controls. The study draws the
conclusion that corrective, detective, and preventative controls significantly improve the
financial performance of hotels in Nairobi County based on the regression coefficients. Due to
this, it was determined that internal control systems had an advantage over the financial
performance of hotels in Nairobi County. The report suggests installing preventive control
systems at hotels in Nairobi County to improve performance. The hotels should also have
objective, independent, and active audit committees while also making sure that valuable
information is only accessible to the staff with the consent of senior management. This would
prevent their staff from having access to valuable information without the permission of senior
staff. The hotels should also have organizational asset identification and protection capabilities
built into their security systems. For them to improve financial performance, the hotels need
set up detective internal control systems. Periodically, the hotels should conduct internal
evaluations of their internal controls. In order to prevent instances of stock out and associated
expenditures, the businesses should also maintain a regular stock of their stocks. To improve
financial success, the hotel departments should also routinely evaluate their budgets. The study
suggests that hotels in Nairobi County implement corrective measures. The hotels should
implement corrective measures to deal with firm-wide issues that would improve financial
performance. The administration of hotels should also create and implement everyday
procedures in their establishment. The hotels should also adopt and set up financial reporting
software that is frequently updated, as well as regular reviews of reporting standards and
procedures. It is advised that future study employ similar experiments with diverse sectors and
variables. | en_US |
